Are rewards credit cards worth it?

They can be if you pay the balance in full each month and spend enough for the points to outweigh the annual fee. If you carry a balance, interest usually costs more than the rewards are worth.

What is a points cap?

A limit on how many points you can earn at the standard rate in a period (often monthly). Above the cap the earn rate may drop or stop, which affects high spenders most.

It depends on the card and program. Some points expire after a period of inactivity; others don’t. The rewards program terms set out the expiry rules.

When is an annual fee worth paying?

Only if the points and perks you’ll realistically use are worth more than the fee. For modest spenders, a no-annual-fee card may cost less overall.

How do I value reward points?

By the redemption value (for example, cents per point for a gift card or flight) multiplied by the points earned, set against the annual fee.

Compare Rewards Credit Cards

A rewards card earns points on eligible spending, which leaves out most government payments, BPAY and cash advances. The points are only worth having if what you redeem them for clears the annual fee, so work out your realistic yearly spend before comparing earn rates. Purchase rates here start at 9.90% p.a. with Westpac's Westpac Lite Card.

Rates checked against every provider’s own published data on 19 Oct 2026

	Interest-free days	Actions
Westpac	Purchase rate9.90%	Interest-free daysUp to 45 days	Compare Westpac Westpac Lite Card	Features: Rewards	Our Lite credit card has 0% foreign transaction fee, a lower purchase rate and lower monthly fee - designed for all things international.
Virgin Money	Purchase rate12.99%	Interest-free daysUp to 55 days	Compare Virgin Money Virgin Money Low Rate Credit Card	Intro 0% for 24 months on balance transfersFeatures: Rewards	At 12.99% p.a. lower your interest, not your standards.
Coles Credit Cards	Purchase rate13.49%	Interest-free daysUp to 55 days	Compare Coles Credit Cards Coles Low Rate Mastercard	Features: Rewards	The Product is rewards credit card that provides individuals with a line of credit facility abd the ability to earn Fluybuys Points on their shop purchases at Coles Supermarket.
Westpac	Purchase rate13.74%	Interest-free daysUp to 55 days	Compare Westpac Low Rate Card	Intro 0% for 20 months on balance transfersFeatures: Rewards	Our Low Rate Card provides a lower interest rate on purchases, plus a lower monthly card fee to help reduce your credit card costs.
Bank of Melbourne	Purchase rate13.99%	Interest-free daysUp to 55 days	Compare Bank of Melbourne Vertigo	Intro 0% for 20 months on balance transfersFeatures: Rewards	An everyday card with a low rate on purchases, and a low monthly card fee.
BankSA	Purchase rate13.99%	Interest-free daysUp to 55 days	Compare BankSA Vertigo	Intro 0% for 20 months on balance transfersFeatures: Rewards	An everyday card with a low rate on purchases, and a low monthly card fee.
St.George Bank	Purchase rate13.99%	Interest-free daysUp to 55 days	Compare St.George Bank Rainbow Vertigo Card	Intro 0% for 20 months on balance transfersFeatures: Rewards	An everyday card with a low rate on purchases, and a low monthly card fee.
St.George Bank	Purchase rate13.99%	Interest-free daysUp to 55 days	Compare St.George Bank Vertigo	Intro 0% for 20 months on balance transfersFeatures: Rewards	An everyday card with a low rate on purchases, and a low monthly card fee.
Queensland Country Bank	Purchase rate14.99%	Interest-free daysUp to 55 days	Compare Queensland Country Bank Visa Business My Rewards	Business onlyFeatures: Rewards	Our Business Visa Credit Card comes with a competitive low interest rate, low annual fee and up to 55 days interest free on purchases and BPAY if you pay your card in full by the due date, and is…
Bankwest	Purchase rate14.99%	Interest-free daysUp to 44 days	Compare Bankwest Bankwest More World Mastercard	Intro 0% for 6 months on balance transfersFeatures: Rewards	A credit card for earning points to redeem for digital vouchers or cashback.
ING	Purchase rate16.99%	Interest-free daysUp to 45 days	Compare ING Orange One Rewards Platinum	Features: Rewards	The credit card that comes with up to $30 a month cashback on your spend, and no ING international transaction fees when you shop overseas or online.
BankVic	Purchase rate18.95%	Interest-free daysUp to 55 days	Compare BankVic Qantas Credit Card	Intro 9.96% for 6 monthsFeatures: Rewards	For Police Association of Victoria, Australian Federal Police Association, Northern Territory Police Association, Victorian Ambulance Union and United Firefighters Union members
MoneyMe	Purchase rate18.99%	Interest-free days—	Compare MoneyMe MoneyMe Luxury Escapes Card	Features: Rewards	Digital credit card with Luxury Escapes loyalty benefits. Purchase and cash advance rates are personalised to your Equifax OneScore credit band. Credit limits up to $30,000.
Qudos Bank	Purchase rate18.99%	Interest-free daysUp to 1 days	Compare Qudos Bank VISA Platinum Credit Card	Intro 4.99% for 5 months on purchases and balance transfers, then 18.99%Features: Rewards	Earn Qantas Points* on your everyday purchases and enjoy a host of other exceptional features with our Visa Platinum Credit Card.
Bank of Melbourne	Purchase rate19.49%	Interest-free daysUp to 55 days	Compare Bank of Melbourne Amplify Business	Business onlyFeatures: Rewards	Amplify Business is a personal liability business credit card that rewards you for your business expenses. Earn something more rewarding with uncapped points on eligible business purchases.
Bank of China	Purchase rate19.99%	Interest-free days—	Compare Bank of China Bank of China Global UnionPay Card	Features: Rewards

What is a rewards credit card?

A rewards credit card earns points on your everyday spending that you can redeem for flights, gift cards, cashback or merchandise. The more you spend, and the higher the earn rate, the more points you collect. The card only comes out ahead when the value of the points realistically earned outweighs the annual fee.

How earn rates and points caps work

Earn rates are quoted as points per dollar and often vary by category or card tier. Many cards apply a monthly points cap, after which the earn rate drops or stops. A high headline earn rate with a low cap can be worth less than a steady rate with no cap, and the cap is in the fine print.

Weighing rewards against the annual fee

Premium rewards cards charge higher annual fees but earn faster and bundle perks; no-annual-fee cards earn modestly but cost nothing to hold. The sum is the points earned from real spending, at a realistic value, minus the fee. Carrying a balance usually wipes out any reward, since interest costs more than points are worth.

How rewards credit cards compare

The earn rate, any points cap, the annual fee and the redemption options are the figures that separate them. Cards can be compared side by side, alongside frequent flyer cards and the credit cards hub.

Glossary

The key terms you’ll meet when comparing these products, reading product disclosures or talking to a provider.

Term	What it means
Annual fee	The yearly fee for holding the card, sometimes waived in the first year or reduced for higher spend.
Balance transfer	Moving debt from one card to another, often at a low or 0% introductory rate for a set period.
Earn rate	How many reward points you earn per dollar spent, which can vary by spend category.
Foreign transaction fee	A fee, often around 3%, on purchases made overseas or in a foreign currency.
Interest-free days	A period (often up to 44 or 55 days) where purchases attract no interest, provided you pay the closing balance in full.
Minimum repayment	The smallest amount you must pay each statement period to keep the account in order; paying only this means interest accrues.
Points cap	A limit on how many points you can earn at the standard rate within a period, after which earning may reduce or stop.
Purchase rate	The interest rate charged on purchases that aren’t paid off by the due date.
Rewards points	Points earned on spending that can be redeemed for flights, gift cards, cashback or merchandise.
Sign-up bonus	A one-off batch of bonus points awarded for opening a card and meeting a minimum spend within a set time.

Term

What it means

Annual fee

The yearly fee for holding the card, sometimes waived in the first year or reduced for higher spend.

Balance transfer

Moving debt from one card to another, often at a low or 0% introductory rate for a set period.

Earn rate

How many reward points you earn per dollar spent, which can vary by spend category.

Foreign transaction fee

A fee, often around 3%, on purchases made overseas or in a foreign currency.

Interest-free days

A period (often up to 44 or 55 days) where purchases attract no interest, provided you pay the closing balance in full.

Minimum repayment

The smallest amount you must pay each statement period to keep the account in order; paying only this means interest accrues.

Points cap

A limit on how many points you can earn at the standard rate within a period, after which earning may reduce or stop.

Purchase rate

The interest rate charged on purchases that aren’t paid off by the due date.

Rewards points

Points earned on spending that can be redeemed for flights, gift cards, cashback or merchandise.

Sign-up bonus

A one-off batch of bonus points awarded for opening a card and meeting a minimum spend within a set time.

Common questions

Rates and fees are sourced from each provider’s CDR Product Reference Data as of the date shown. They are general information only. Not credit advice. CompareThat is not a credit provider. Payment can change where a product appears, never which products we show.